Tax scammers want to steal your savings

Tax scammers want to steal your savings

The authorities are working with retailers to prevent a scam in which consumers are cajoled to buy gift cards to pay fake tax debts.

Australian Taxation Office assistant commissioner Kath Anderson said the ATO has asked major retailers to place warnings at the point of sale for pre-paid gift cards.

The ATO is also providing information to retail staff so they can provide advice to at-risk customers, according to Ms Anderson.

“We are particularly concerned that vulnerable Australians who have little interaction with us are not only being led to believe that this is a legitimate request of payment from the ATO, but that they are also giving out personal information,” she said.

Ms Anderson said the most common scams reported to the ATO include:

  • Phone calls demanding demanding payment for a fake tax debt
  • Emails requesting personal identifying information
  • Emails asking for a fee to release a refund

Ms Anderson said that if someone gets a hold of your personal information, it can be used to impersonate you and engage in fraudulent activity.

She warned people to be wary of emails, phone calls and SMS during tax time that claim to be from the ATO, even if they seem legitimate.

“These scammers use sophisticated techniques to get your money or data and can often use a variety of techniques such as ‘spoofing’ telephone numbers and replicating our branding in emails to try and legitimise the interaction,” she said.

Identity security tips from the ATO

Here, in the ATO’s words, are five steps people can take to protect their family and friends from identity crimes.

Know what to protect

Personal information that could be used by scammers to impersonate someone can include their full name, date of birth, current address, bank account numbers, credit card details, tax file number, driver’s licence or passport details, and any passwords.

Remind them to keep their personal information safe and secure

If personal information is stolen it can be very difficult to get back. It’s best to store things like a tax file number or birth certificate somewhere safe and secure – for example, don’t carry it around in a wallet or handbag or saved on a phone.

Warn them if they share too much on social media

Scammers can use information published on social networking sites to steal identities. If you see someone sharing personal information online, remind them that they could be putting themselves at risk of targeted attacks. It’s also a good idea to make sure profiles are set to private, and to be cautious about which friend requests to accept.

Be suspicious of requests for personal information

If you notice that your family and friends have received a request for their personal information, tell them to treat the request with caution. Scammers can be believable and will sometimes quote personal information to sound authentic, so if you hear that someone is asking for personal information, consider the possibility that it may be a scam. To check if a call, email, SMS is from the ATO, call us on 1800 008 540 to confirm.

Know legitimate ways to make payments

Scammers may use threatening tactics to trick their victims into paying false debts in pre-paid gift cards or by sending money to non-ATO bank accounts. To check that a payment method is legitimate, we have a list which can found on our website that outlines methods when dealing with us.

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Learn more about savings accounts

How can I get a $4000 loan approved?

While personal loans and medium amount loans don’t offer guaranteed approval, there are steps you can take to help increase the likelihood of your application being approved, including:

  • Fulfilling the eligibility criteria (providing ID, proof of residency, proof of income etc.)
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  • Comparing carefully before applying (making multiple loan applications can mean having your credit checked multiple times, which can look bad to some lenders and reduce your chances of being approved by them)

What is a savings account?

A savings account is a type of bank account in which you earn interest on the money you deposit. This makes it one of the easiest and safest investment tools.

Can I overdraft my savings account?

A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.

How to open a savings account for my child?

Some banks and financial institutions allow parents to open a bank account for their child as soon as it is born, and start depositing funds to go towards the child’s future.

Children’s savings accounts generally don’t have fees, and are structured to help develop positive financial habits by limiting withdrawals, encouraging regular deposits, and earning interest on the savings, similarly to standard savings accounts.

How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

To make sure your savings account makes money and doesn’t lose money, it’s important to maintain a large enough minimum balance that the annual interest earned exceeds any annual fees charged on the account.

Can you set up a savings account online?

Yes. Several large and small banks offer online applications for savings accounts, and there are also online-only financial institutions to consider.

Online-only savings accounts are often less expensive than other savings accounts, though they may not offer the same flexibility, features, or face-to-face service as more traditional savings accounts.

Who has the highest interest rates for savings accounts?

As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

How does interest work on savings accounts?

The type of interest savings accounts accrues is called compound interest. Compound interest is interest paid on the initial deposit amount, as well as the accumulated interest on money you have. This is different from simple interest where interest is paid at the end of a specified term. Compound interest allows you to earn interest on interest at a higher frequency. 

Example: John deposits $10,000 into a savings account with an interest rate of 5 per cent that he leaves untouched for 10 years. At the end of the first year he will have $10,512 in savings. After ten years, he will have saved $16,470.

Can you direct deposit to a savings account?

Yes. You can make one off payments or set up regular direct deposits into a savings account. This can be organised easily through online banking or by making deposits in a branch. Talk to your lender to find out the easiest way for you to set up direct deposits.

How do I open a savings account?

Opening a savings account is a relatively simple process. If you’ve found an account with a suitable interest rate, you’ll just need to get in contact with your chosen lender via a branch, phone call or hop online to begin the process. 

You may be required to provide:

  • Personal details, including identification (driver’s license, passport etc.)
  • Tax file number
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Can you have a joint savings account?

Yes. Joint savings accounts can be useful for two or more people wanting to combine their savings to meet shared financial goals, including spouses, flatmates and business partners.

Some joint savings accounts require all parties to sign before they can access the money. While less convenient, this extra security can help encourage all parties to meet their shared financial goals.

Other joint savings accounts allow any of the account holders to access the money. These accounts can be convenient for financially responsible couples that trust one another implicitly. 

What is a good interest rate for a savings account?

A good rule of thumb to keep in mind with savings accounts is to look for a rate that is higher than the CPI inflation rate. This number is constantly changing, so check the Reserve Bank of Australia’s page. If you aren’t earning interest above this then the value of your money will go backwards over time.

How much money should I have in my savings account?

A good rule of thumb when working out a minimum balance for your savings account is to make sure that you’ll earn more in annual interest on your savings than what you’ll be charged in annual fees.

If you’re saving with a specific goal in mind, prepare a budget so the interest you earn on your deposits will help you efficiently reach this goal. Online financial calculators may be helpful here.

What is the interest rate on savings accounts?

As banks frequently change their rates, the most accurate way to look at interest rates on savings accounts is to use a savings accounts comparison tool. When you look at the savings rate check what the maximum and minimum rates are. Often banks will offer you a promotional rate for the first few months which is competitive, but then revert back to a base rate which can sometimes be less than inflation. Ongoing bonus rates are often a safer bet as they will keep rewarding you with the maximum rate, provided you meet their criteria